Bitcoin Faces Critical Week as US Macro Events Loom Large
The crypto market is bracing for a crucial week ahead as major US macroeconomic events could significantly impact Bitcoin's price. The Bureau of Economic Analysis will release July's Personal Consumption Expenditures (PCE) Price Index on Wednesday, which remains the Federal Reserve's preferred measure for assessing underlying inflationary pressures. Economists expect core PCE to rise slightly month over month and 3.2% annually, which could leave underlying inflation higher than the Fed's 2% objective.
The same day, the second estimate of US GDP for Q2 will be released, showing annualized growth of just 1.5%, down significantly from 2.1% during Q1. The data could influence expectations on interest rates and Treasury yields, potentially pushing them higher. A hotter-than-expected reading would strengthen expectations that US interest rates will remain elevated or even rise again.
On Friday, Federal Reserve Chair Kevin Warsh will deliver his first keynote address at the annual Jackson Hole Economic Policy Symposium. His stance on persistent inflation and potential rate hikes will likely impact Bitcoin's price, which has stalled at around $77,000 since reaching almost $80,000 last week.